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Karachi: The Meezan Dedicated Equity Fund (MDEF), managed by Meezan Investment Management, showcased a robust performance for the fiscal year ending June 2024, delivering a 7.49% return to its investors, significantly outperforming its benchmark, the KSE Meezan Index (KMI-30), which declined by 7.87% over the same period.
The fund, which strictly adheres to Shariah-compliant investment policies, generated a total income of Rs. 244 million in FY24. This revenue was derived from realized gains on investments of Rs. 91 million and dividend income amounting to Rs. 125 million. According to information available from the Pakistan Stock Exchange (PSX), MDEF also recorded Rs. 27 million in income from savings accounts held with banks, culminating in a net income of Rs. 229 million after accounting for expenses. This performance underscores the fund’s strategic investment approach amidst volatile market conditions.
Asset allocations for MDEF have evolved over the past year, with significant positions in top-performing sectors such as energy and banking. As of June 2024, the largest holdings included The Hub Power Company Limited at 12.6% and Mari Petroleum Company Limited at 11.1%, reflecting a focused investment strategy that leverages market leaders to foster fund growth.
Furthermore, the fund has committed to social responsibility, allocating Rs. 0.94 million to charitable and welfare organizations, in consultation with its Shariah Advisor, representing income that is deemed non-compliant with Shariah principles.
MDEF’s distribution strategy also remained robust, issuing an interim dividend of Rs. 2.25 per unit, which contributes to a total distribution of Rs. 12.36 million for the year, marking a significant contribution to shareholder returns.
The fund’s management continues to maintain a transparent approach, adhering to a strict proxy voting policy that ensures all decisions align with shareholder interests, reporting a 100% agreement rate in the latest round of resolutions.
As MDEF moves forward, its adherence to Shariah principles combined with a proactive asset management strategy positions it well to capitalize on market opportunities and navigate challenges in the evolving economic landscape.